In August 2017, Hoegh LNG Partners (HMLP), which provides floating LNG services under long-term contracts, released its second quarter earnings. The company reported revenue of $35 million in 2Q17, up from $22.8 million in 2Q16. It earned an operating income and net income of $23.1 million and $12.2 million, respectively. Hoegh LNG Partners paid a dividend of $0.43 per share, which is equivalent to $1.72 per share on an annualized basis. HMLP’s total distributions amounted to $14.4 million, and its distributable cash flow was $15.2 million. Thus, it has a dividend payout ratio of more than one, which is considered healthy.
The consensus rating on Hoegh LNG Partners is 1.4, which means a “strong buy.” The consensus ratings for other LNG (UNG) carrier companies are as follows:
- Dynagas LNG Partners (DLNG): 2.1 (buy)
- Teekay LNG Partners (TGP): 2.3 (buy)
- Gaslog Partners (GLOP): 1.8 (buy)
- Golar LNG Partners (GMLP): 2.4 (buy)
Nine analysts cover Hoegh LNG Partners (HMLP). All the analysts are bullish on the stock. Five analysts recommend a “strong buy,” and four analysts recommend a “buy” for HMLP. None of the analysts gave a “hold,” “sell,” or “strong sell” rating to the stock. In 2017, only one analyst revised their recommendation for HMLP. Barclays upgraded the stock to “overweight” in July.
The consensus 12-month target price on HMLP is $21.96. Compared to the current market price of $18.4 on September 18, the target price implies a potential upside of 19%.
In the next part of the series, we’ll look at analyst recommendations for Gaslog and Gaslog Partners.